2020 was the first year of CECL adoption for many public financial institutions. With the first few quarters of reporting behind us, what are some major takeaways that will make a 2023 adoption of CECL less stressful for Credit Unions.
Understand the impacts of economic forecasting under CECL compared to an incurred loss approach.
Identify data and process flexibility that will help manage risk in a volatile market.
Understand how qualitative factors are being integrated into methodologies and best practice considerations to avoid layering of risk.